“The market participants would be able to take a long-term view on the underlying. Introduction of additional indices will also lead to increased participation in the index futures market,” it said in a statement.

The index is designed to measure the performance of the top 50 largest and liquid stocks in the exchange’s Large Mid Cap by float-adjusted market capitalisation.

Further, index futures contracts will lead to better price discovery and will be useful in hedging and risk management tools.

According to the exchange, it will also take market towards a multi-product environment.

“The index is diversified index as it represents each key economic sector identified by bourse’s sector model covering approximately 53.9 per cent of total market capitalisation of the exchange listed companies as of October 30, 2016,” it added.